STRATEGIC MANAGEMENT Essay Example | Topics and Well Written Essays - 6000 words

STRATEGIC MANAGEMENT - Essay manakinTutor Signature Date Table of Contents Introduction 4 Theoretical scope 5 Advantages and Disadvantages of E-commerce 6 E- credit line strategies 8 Implementation Challenges 12 Conclusion 13 References 15 Introduction With the evolution of engineering science and introduction of the Internet, there is great mixed bag in the business environment. Every organization whether it is large or small scale, is trying to adopt and incorporate in business models based on technology into their system. This adoption of web based technology in the business lead to the emergence of E-commerce. In the current business scenario, e-commerce playing a crucial business office and changed the way business is conducted around the globe. E-commerce is forcing the companies to find the natural ways of expanding their marketplace in which they compete (Plant 2000). To compete and sustain in the new markets, it become more than crucial for the organization to not on ly attract the customers, but overly to retain by tailoring the products and services according to their needs and demand. Apart from redefining the products and services, organizations be also forced to restructure their business processes in order to deliver the products and services more effectively and efficiently (Reynolds 2004). ... In this report two business models has been used- McCarthys four selling mix model and Porters five forces model to identify the strategies for organizations which want to enter in the field of e-commerce. The general goal of this study is provide significant insights onto the challenges and advantages of e-commerce and business strategies. Theoretical Background (a) McCarthys Four Marketing Mix Model As per the McCarthy, a impregnable defines its market strategies after identifying the target market for its products or services. On the basis of the target market, organization then spring ups a marketing mix is a combining of product, price, promotion, and place designed according to the target market with the aim of enhancing the sales (Blythe 2009). The unique marketing mix allows the organization to sustain and compete more effectively, therefrom ensures the profitability and sustainability. For example, by offering different products with an attractive sales promotion and effective logistics, a firm can increase its sales and revenues. This concept is also applicable on the e-commerce, and organizations working in this field are required to develop strategies for their target market by taking the unique nature of online marketing into the consideration (Napier et al 2006). (b) Porters Five Competitive Forces Model This five competitive forces model of Porters says that every organization develop its business strategies with the aim of gaining competitive advantage over its competitors. Organization can develop its strategies by focusing on five primary forces (a) threat of new entrants, (b) rivalry among existing firms within an industry, (c) the Strategic management Essay Example Topics and Well Written Essays - 750 words - 3Strategic management - Essay Example(p. 96) They are pivotal in generating competitive advantage because they reinforce an organizations functions such as marketing, production or research and development. For instance, in the marketing department, the strategy would work by featuring real-life customers in direct-response print and television advertisements that would steer them towards the company website. In the application of a functional management strategy, the functions as swell up as the roles assigned will be able to manage corporate level strategies and their activities in such a way that they optimize their functional carrying into action resulting to positive results that contribute to the overall company performance.Ray maintained that there are two kinds of competitive management strategies the violative and defensive strategies. The first is refer wi th the strategy that usually takes place in an established competitors market location, while the latter takes place in the organizations receive current market position as a defense against possible attacks by a rival. (p. 13) However, the case is, the goal is the same to secure market share, nonplus new customers, maintain current ones and cultivate customer loyalty. In the case of this company, a combination of these two strategies would be used, although with more emphasis on the offensive strategy, considering the fact that most of its products claim less than 3 percent of the market, with only one product dominating 40 percent in its own market location. In terms of offensive strategy, the competitive advantage that drives the attraction of new customers is fuelled by innovation and customer value. Currently, the focus of the organization on innovation has been reaping rewards already. consort to Pieper, corporate strategy is the setting of a companys long-term goals, major policies and plans, and the